NSIs Basic principles High Yield fund B Two asset classes: - PowerPoint PPT Presentation

Analyst Meeting 10 August 2012

NSI’s Basic principles  High Yield fund B  Two asset classes: Offices & Retail  Anti-cyclical asset management  Active asset management NL  VNOI acquisition  Balancing portfolio over the cycle  50/50 % on long term  Stable cash flow from retail is backbone to optimize total return  Dividend  Distribute almost entire Direct Result (quarterly)  Optional dividend: cash, stock or combination  Dutch REIT: no corporate tax  Access to funding  Listed on NYSE Euronext, included in AMX index  Financed by well capitalized relationship banks  Raised € 25 million equity to funds value enhancing investments (“Rode Olifant ” and “Het Vasteland ”) 2

Geographical Focus  Focus on Netherlands and Belgium  Exit strategy Switzerland; 70% is assets sold; sale of 2 remaining assets ongoing Netherlands: Belgium: • € 1.551 million • € 601 million • GIY: 9.2% • GIY: 8.7% Office : Office : • AMSTERDAM Focus on Randstad • Focus on DEN HAAG Antwerpen-Brussels UTRECHT Retail : • Nationwide ROTTERDAM Logistics: regional focus • Strategic axes: Office Antwerpen- Mechelen ANTWERPEN & Antwerpen – Luik Retail MECHELEN Logistics BRUSSEL LI È GE 3

Compelling Competencies teaming up  Excellent letting platform – Dedicated office and retail teams – Regional approach – Tenant Focus program supported by CRM system – Proactive tenant management (incl. expirations) – Continuous dialogue with tenants  Innovative strength embedded in organization – Business Development Manager to drive innovation and anticipate changing market needs  T echnical and Commercial property management – (Cost) efficient – Increased tenant access  Property development – Value enhancing to assets – ‘Tenant tailored’ – (Cost) efficient  Asset management 4 – Tools and systems to optimize asset management

Our development competencies at work Enhancing value in shopping center “ Keizerslanden ”  Significantly expand (7,500 sqm), upgrade (renovate 7,300 sqm and public area), new parking lots (200) and apartments (45)  Required investment: € 22,3 million  Our competencies into play: – Our enlarged scale as a result of the merger – Integral Strategic approach of our Commercial Retail team, Asset Management and Property management – Leading role of our Commercial Property team in redevelopment – In house implementation allows pro-active and tenant focused letting strategy 5

Our innovation competencies at work Launching new leasing concepts  Turnaround of large single tenant properties into multi-tenant concepts – e.g.: De Rode Olifant (10,000 sqm) • Investments: € 6.85 mln building related, € 1.25 mln tenant related • € 1.7-2.5m annual rental income • € 7-9m value increase expected in a 1-3 yr period – Het Vasteland (14,000 sqm) into HNK Rotterdam  Our competencies into play: – Expertise of market offering and tenant needs to identify opportunities for new leasing concepts – Seamless cooperation of commercial and technical teams to optimize delivery (on time, in budget and pre-let as much as possible). 6

Our letting competencies at work Anticipating tenant needs  Following organization changes, tenant Grontmij needed to move from the South of the Netherlands (Roosendaal) to Rotterdam  Operational synergy from our enlarged scale following the merger with VNOI; Grontmij moved to a former VNOI property in Rotterdam  Shows NSI’s ability to match tenant needs within its portfolio  Our competencies into play: – Thanks to continuous tenant dialogue, NSI was aware of organization change and was able to anticipate – Our Commercial and Technical property teams were able to convert Grontmij’s requirements in a viable leasing offer – Active management ensured new tenant for ‘old’ building and minimized temporary vacancy 7

Asset Focus and Leasing Strategy Offices Retail • • Medium scale (approx. 5,000 sqm) in Medium scale urban shopping areas (5,000 – 7,500 sqm) urban areas • • Larger scale suiting multi-tenant and Small city district shopping centers flexible concepts (5,000-15,000 sqm) (7,500-12,500 sqm) • Large scale retail (20,000 sqm) • Webshops • Pro -active and tenant focused management • Leveraging in house competencies • Focus on value enhancing investments rather than incentives • • Innovative leasing concepts to Creating dominancy in local retail increase value per sqm landscape • • Multi-tenant, flexible and full service Actively managing retail hierarchy • concepts to drive rental income and Targeting daily shopping needs • reduce risk Balanced mix of tenants and • Building NSI office brand branches • portfolio(e.g. HNK) At least 2 supermarkets, 25% food overall • • Focus on Randstad in NL Healthy regional spread, in urban • Focus on Antwerp and Brussels in growth areas • Sufficient ‘critical mass’ BE 8

Tenant Focus - retail  (Inter)national chains and franchisers  Local entrepreneurs  Targeting least 25% Food % Characteristics Top 10 tenants annual Franchisers rent Chains and • (Inter) National chains and franchisers generate 1 Ahold Vastgoed 6,9% traffic to shopping centers • Provides stability: creditworthy tenants with a long 2 Eijerkamp 4,8% term strategy and a long term leasing horizon 3 Jumbo 2,9% Entrepeneurs • Local entrepreneurs provide identity and uplift 4 Lidl Nederland Gmbh 2,6% entrepreneurial spirit to shopping centre Local 5 Blokker 2,3% More unique product offering and more diversified • mix 6 Mediamarkt Saturn 2,2% • Food retail companies, offering daily shopping needs, 7 Plus 2,2% has proven to be crucial for the success of local shopping area’s; 8 A.S. Watson Property 2,1% Continental Europe Food • Super markets create local dominancy NSI is targeting; B.V. NSI targets choice for consumer: at least 2 type of supermarkets (lfull service vs discount) 9 Detailconsult Groep 1,7% • Supermarkets provides long term stability 10 Action Non Food 1,3% • Food Service companies deliver on the required social success factors

Medium Scale urban shopping centre Schiedam, Noleslaan  Highlights: – Strong combination local entrepreneurs and national chains – Appealing mix in offering and strong retail hierarchy gives competitive advantage in the area – Good accessibility and parking space – Well spread expiration calendar – Fully let while surrounding shopping centres face over 20% vacancy – Active relationships with municipality and authorities Key facts: • 5,627 sqm • Occupancy 100% • Annual rent € 646,000 • Since 1998 in NSI’s portfolio 10

Small city district shopping centre Hoorn, Kersenbogaard  Highlights: – Strong competitive position due to varied retail offering and combination of lively local entrepreneurship and well known national chains – Well located, near to other point of interest (e.g. health center) – Easy accessible by public transport (train station) and car – Presence of strong food retail companies – Good range of food service companies – Fully let and well spread expiration calendar Key facts: • 6,682 sqm • Occupancy 100% • Annual rent € 1,290,825 • Since 1995 in NSI’s portfolio 11

Large scale retail Middelburg, Mortiere  Highlights: – Fits well in total regional retail planning/ offering – Good balance of franchisers and national chains – Good mix in offering – Variety in units, facilitating diversity in offering – Regional function – Fully let and well spread expiration calendar Key facts: • 20,063 sqm • Occupancy 100% • Annual rent € 1,622,094 • Since 2006 in NSI’s portfolio 12

Tenant Focus - office  Multi-tenant  SME, Governmental linked institutions, Large companies % Top 10 tenants Characteristics annual rent  Growth engine of domestic economy 1 Rijksgebouwendienst 5,2% SME  Strong local/regional character requiring tailored approach, matching NSI’s capabilities 2 PriceWaterhouseCoopers 4,5%  Provides diversification in duration and size 3 Deloitte 3,9% 4 Hewlett-Packard Belgium 2,7% Government-linked  Reliable tenant group (EDS Belgium) institutions – relatively large parties 5 Nike Europe 2,5% – long-term contracts 6 Stichting de Thuiszorg Icare 2,4% 7 Fiege 2,2% Large companies 8 ROC Amsterdam 2,1%  Supports profile and provides diversification  Relatively long-term contracts 9 Gemeente Heerlen 1,6% 10 Imtech 1,5%

Our long term decisions Asset focus Offices & Retail; 50/50 over the asset cycle High yield profile Benelux focused Inhouse Letting teams Property & Integrally Asset Technical management managed Management and tenant Property development and management focused Marketing & business development Scale Utilizing inhouse property management Diversified and innovative leasing concepts Branding Funding Gradual reduction LTV; < 55% medium term, < 50% long term Interest fixing of at least 80% 14 Diversification of funding

Our key prorities Operational  Increasing occupancy levels  Further advancing operational synergies from the merger  Improve efficiencies and cost control Funding  Reducing loan to value  Refinancing maturing debt 15